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Sales Forecasting At Colgate Palmolive Pakistan Limited
Colgate Palmolive Pakistan Limited is operated as a franchise of Colgate Palmolive Co. (US-based) by Lakson group companies.
Its located at Lakson square building no. 2 office near zainab market karachi.
It has been a major player in the health care sector through its valuable and innovative solutions particularly in the oral care, personal care, surface care and fabric care.
Company offerings are quite successful in generating brand loyalty and demand for the products, as it has been able to generate the increase in the net revenue and gross profit by 22.7% and 8.6% respectively.
Target increase in market share was clearly achieved in the YR2011 by attaining an increase of 1.42% in the net profit. Rs. 14,150 million was the annual net sales of YR11 with gross profit of Rs.4,161 million.
Focus of Our Report
Our report focuses mainly on the “Sales Forecasting”.
Our analysis and findings are focused to Colgate GRF (great regular flavor) brand’s forecasting techniques and issues related to the scope of Sales manager.
We have interviewed
National, Regional & Area managers of Karachi,
and some merchandisers in order attain trade insights and market norms regarding forecasting practices.
Estimation of Industry sales
Colgate GRF & its Competitors
Top of mind brand in this category is Colgate GRF as being market leader with 59% share
Whereas Medicam & Pepsodant are the direct competitor for Colgate GRF having 20% & 3% respectively
The 18% share is with other competitors like forhans etc.
Colgate GRF is a supreme profit generating factor and therefore termed as “Cash Cow” for CP Pakistan.
Colgate tooth paste with all its brands like Herbal, Misvaak, Maxfresh, etc. that contains nearly 55% of the market share as of whole toothpaste category in YR2011.
Sales in volume were not shared.
Rs. 4161m(Sales of YR11) /0.55 (Colgates share in YR11)= Rs.7565m (Category sales in YR11)
20% of expected increase so expected total category sales would be Rs.7565 X 1.20 = Rs.9078m
Rs.9078m is the market potential.
Colgate aims to grab 58% to 60% of the market share by the end of June YR13.
For this some new brands are in pipeline of brand extension plan. The launch of Colgate Sensitive is part of launch and share boosting plan.
Sales potential is Rs.5266m to Rs.5447m
Annual Forecast table for Colgate GRF
YR12 expected sales of 150gms tube are 15% due to 2-3 brush pack schemes.
Stock keeping unit information
Colgate GRF is available in 130 different stock keeping units (SKUs) which are
50grams for Rs.40
75grams for Rs.58
100grams for Rs.72
150grams for Rs.100
200grams for Rs.125
Distributor margin is 5.5%
Retail Margin is 7%